Tribunal held that S.\u00a036(1)(iii)\u00a0of the\u00a0\u00a0nowhere restricts the disallowance in respect of interest paid on share application money. Until the shares were allotted, the share application money is capital borrowed for the purpose of the business or profession. Until and unless there was an embargo and restriction under S. \u00a036(1)(iii), no disallowance could be made in respect of interest paid on the share application money. Until and unless the shares are allotted, the share application money could be refunded to the persons from whom the money had been received and it remains capital borrowed. The assessee had filed all the documentary evidence in respect of Rs. 6,50,000 being the amount of consultancy charges paid before the authorities and this had not been properly considered. Therefore, in the interest of justice the AO was to decide the issue afresh, as per law, after giving full opportunity of hearing to the assessee and for producing the evidence. (AY.2011-12)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 36(1)(iii) : Interest on borrowed capital-Share application money is capital borrowed for purpose of business or profession until shares are allotted-Allowable as deduction. Consulting charges-Matter remanded to AO. [S. 37(1)]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-10932","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2Qk","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10932","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=10932"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10932\/revisions"}],"predecessor-version":[{"id":10933,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10932\/revisions\/10933"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=10932"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=10932"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=10932"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}